Stitch Fix (NASDAQ:SFIX) Trading Up 8.3% - Should You Buy?

Key Points

• Stitch Fix shares rose by 8.3% during trading, closing at $4.89 after previously closing at $4.51, although trading volume was significantly lower than average.
• Wall Street analysts have a consensus average rating of "Hold" for Stitch Fix, with an average target price of $5.67, following various upgrades and downgrades from different analysts.
• Insider transactions revealed significant share sales, with insiders selling a total of 2,177,317 shares worth approximately $10.5 million over the last three months.

Stitch Fix, Inc. (NASDAQ:SFIX - Get Free Report)'s share price rose 8.3% on Tuesday . The company traded as high as $4.79 and last traded at $4.89. Approximately 272,785 shares were traded during trading, a decline of 88% from the average daily volume of 2,192,899 shares. The stock had previously closed at $4.51.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. Telsey Advisory Group restated a "market perform" rating and issued a $6.00 target price on shares of Stitch Fix in a report on Wednesday, June 11th. William Blair upgraded shares of Stitch Fix from a "market perform" rating to an "outperform" rating in a research note on Monday, July 14th. Finally, Wall Street Zen lowered shares of Stitch Fix from a "buy" rating to a "hold" rating in a research note on Sunday, June 22nd. Four analysts have rated the stock with a hold rating and one has assigned a buy rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $5.67.

Stitch Fix Price Performance

The business has a 50 day simple moving average of $4.36 and a 200 day simple moving average of $4.14. The company has a market cap of $643.32 million, a price-to-earnings ratio of -10.72 and a beta of 2.01.

Stitch Fix (NASDAQ:SFIX - Get Free Report) last released its earnings results on Wednesday, June 11th. The company reported ($0.06) EPS for the quarter, beating the consensus estimate of ($0.11) by $0.05. Stitch Fix had a negative return on equity of 18.15% and a negative net margin of 4.44%. Stitch Fix's revenue was up .7% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.18) earnings per share. As a group, sell-side analysts anticipate that Stitch Fix, Inc. will post -0.44 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Stitch Fix news, CFO David Aufderhaar sold 20,538 shares of the stock in a transaction dated Tuesday, July 22nd. The stock was sold at an average price of $5.10, for a total value of $104,743.80. Following the transaction, the chief financial officer owned 937,338 shares of the company's stock, valued at approximately $4,780,423.80. This represents a 2.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, major shareholder Working Capital Advisors (Uk) sold 1,370,931 shares of the business's stock in a transaction dated Tuesday, June 10th. The stock was sold at an average price of $4.68, for a total value of $6,415,957.08. Following the transaction, the insider owned 10,608,822 shares of the company's stock, valued at $49,649,286.96. The trade was a 11.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 2,328,467 shares of company stock valued at $11,261,260 in the last ninety days. 16.95% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Stitch Fix

Institutional investors and hedge funds have recently modified their holdings of the business. Fund 1 Investments LLC boosted its stake in Stitch Fix by 44.6% in the 2nd quarter. Fund 1 Investments LLC now owns 9,943,821 shares of the company's stock worth $36,792,000 after purchasing an additional 3,064,901 shares during the period. Marshall Wace LLP lifted its holdings in shares of Stitch Fix by 4,898.1% in the second quarter. Marshall Wace LLP now owns 2,010,034 shares of the company's stock valued at $7,437,000 after purchasing an additional 1,969,818 shares in the last quarter. Jacobs Levy Equity Management Inc. lifted its holdings in shares of Stitch Fix by 142.9% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 2,464,863 shares of the company's stock valued at $10,624,000 after purchasing an additional 1,449,941 shares in the last quarter. Nuveen LLC acquired a new position in shares of Stitch Fix during the first quarter worth about $4,159,000. Finally, Shay Capital LLC bought a new position in shares of Stitch Fix during the second quarter worth about $3,570,000. 71.04% of the stock is currently owned by institutional investors and hedge funds.

Stitch Fix Company Profile

Stitch Fix, Inc sells a range of apparel, shoes, and accessories for men, women, and kids through its website and mobile application in the United States and the United Kingdom. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags under the Stitch Fix brand. The company was formerly known as rack habit inc.